Apartment Loan in Orange County, California:
Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties in Orange County. Call for great rates for an apartment loan in Anaheim, Irvine or Santa Ana. Caffrey & Company LLC has a special focus in Orange County apartment loans. The most attractive, non-recourse loans terms start at $1,000,000 for multifamily properties. Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $7 million leverage up to 85% is available) you are at the right place. These specialized apartment loan products are available in all of the suburbs of Los Angeles including Santa Ana, Anaheim, Irvine, New Port beach, Laguna Beach, Dana Point and San Clemente.
The market in Orange County for Multifamily is strong. Lenders provide reducing pricing and higher leverage for this market over smaller markets. Let’s see how the Orange County California apartment market is performing as of June of 2024.
The Orange County rental market is experiencing strong demand across both upper-tier and lower-cost apartments. The Class A vacancy rate in areas like Newport Beach, Huntington Beach, and West Irvine has declined, with sparse construction contributing to the shortage of supply. Furthermore, the metro’s median home price of nearly $1.4 million and anticipated job gains in 2024 are expected to fuel luxury renting, keeping Class A vacancy rates in the 3 to mid-4 percent range. Similarly, lower-cost apartments in areas like Santa Ana and Buena Park-Cypress are witnessing high demand, with the Class C vacancy rate being the tightest among major West Coast markets at 2.8 percent.
In terms of construction, the delivery volume has slightly increased on a year-over-year basis, leading to a 1.2 percent inventory growth. Most additions are planned for Irvine and Anaheim, which helps mitigate the impact of new supply in other areas. The rental stock grew by 1.0 percent over the yearlong span ending in March, with approximately 4,800 rentals under construction as of April. Notably, the pace of vacancy increase has slowed, with the metro’s vacancy rate sitting at 3.8 percent, 30 basis points below its long-term average.
The average effective rent in Orange County rose minimally in 2024, reaching $2,837 per month. The rent gains were comparable across property classes, with the mean effective rate exceeding Los Angeles’ average rate for a second consecutive year. With positive blue and white-collar hiring expected, Orange County is anticipated to grow by 0.9 percent in 2024, distinguishing it as the only major Southern California market to note such growth. Additionally, the area’s Class C fundamentals continue to attract private investors, with favorable pricing playing a role in sustaining investor interest despite a decline in multifamily deal flow over the past year.
Multifamily Loan Underwriting:
Each loan product has unique underwriting requirements. Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds. We offer this expert loan underwriting for an apartment building loans in Los Angeles. Therefore, this will help to achieve the best pricing and loan terms for your commercial real estate investment.
Free Loan Quote:
We encourage our clients to submit key property level data for a free loan underwriting review. This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider. Here is a short list of property level data that would aid in providing a loan quote:
Required Underwriting information needed for an Apartment loan in Orange County:
- Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
- Current Rent Roll
- Brief narrative description of the property.
- If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
- What is the purpose of the loan? Acquisition, Refinance, cash out, re-position the property (renovations).
Next we will need to understand your investment objectives. How much do you wish to borrower on the apartment complex? Is this a long-term investment or short-term investment? In other words outline your apartment loan in Los Angeles loan request.
We understand the financing of an apartment complex is a very important component of your investment. Therefore, we encourage our client to send us details on the Orange County property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property. We can review and provide some up front loan options.
Fixed Rate Loan Terms are Available for Multifamily Properties:
Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $7 million). The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties. There must be at least 5-units. If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.
How long will it take to close the Loan?
The closing process normally takes between 45 and 55 days to close an apartment building loan in Los Angeles. Closing costs vary between loan products. Before you reach for your checkbook we will provide a detailed estimate of the anticipated closing costs. At this stage you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.
In conclusion you find details on several loan products by following these links: Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans in Orange County also on our web site: Apartment Loan Interest Rates.
Keep Caffrey & Company in mind when searching for a California lender for apartment loans. Have a question please call: Mike Caffrey (913) 402-7077 or email: [email protected]
On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.
Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077
[email protected]
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